Why Malta?
Malta has become an extremely attractive jurisdiction for foreign investors looking to set up or relocate their businesses.
Boasting one of the fastest growing economies, Malta is currently amongst some of the world’s leading international hubs for business. It has built a strong reputation as a great place to conduct international business and offers expats and business owners a variety of benefits and incentives including a competitive tax regime, fiscal and social benefits, and investment immigration opportunities.
Corporate Tax and Legal Framework
Malta has one of the most competitive tax regimes and robust legal frameworks in Europe. Companies incorporated in Malta are subject to a 35% standard corporate tax rate on profits, however in most cases this can reduced to 5% and in some cases 0%.
The Full Imputation System
The Full Imputation Tax System applies to the taxation of dividends on profits made by Maltese companies. Simply put, where dividends are distributed to individuals out of taxed profits, the dividend provides an imputation credit on the tax paid by the company on the profits that have been distributed.
This provides the shareholders of a company with a higher level of assurance that their dividend income will not be subject to any double taxation.
For more information, please refer to our ‘Tax in Malta’ information sheet.
Investment Immigration Opportunities
Malta offers a range of citizen and residence programmes which offers individuals interested in relocating to Malta the ability to take up citizenship or residency in Malta. Some of these programmes are aimed at Highly Qualified Persons and professionals in Key Employment but there are also other programmes which grant an EU passport or residency permit to qualifying persons through investment in Malta.
Malta Citizenship by Direct Investment
The Malta Citizenship by Direct Investment programme offers individuals and family dependents the ability to be naturalised as Maltese Citizens and therefore acquire a Maltese Passport, by way of a direct investment into Malta.
The direct investments required are a government contribution; a property investment with a minimum value of €700,000 or the lease of a property for a minimum annual rent of €16,000 (for at least five years from the date of the Certificate of Citizenship); and a compulsory donation of €10,000 to a registered non-governmental organisation or society. The qualifying investment must be held for five years, and the applicant must demonstrate strong links to the island.
Malta Global Residence Programme (GRP)
The Global Residence Programme is designed to attract wealthy third-country nationals such as non-EU, EEA or Swiss nationals seeking to take up tax residence in Malta.
Applicants must be able to demonstrate that they receive a stable income, sufficient to maintain both them and any dependents without having to make use of the social assistance system in Malta.
Applicants must be a fit and proper person, possess a valid travel document, have health insurance that addresses all risks Maltese nationals are normally covered by and must be able to adequately communicate in one of the official languages of Malta.
Aside from the above, applicants will need to hold qualifying property in Malta.
The applicant and his/her dependants should be represented by an Authorised Registered Mandatory (ARM) in Malta.
For more information click here.
The Residence Programme or Tax Residence Programme (TRP)
This programme is aimed at attracting individuals who are nationals of the EU, EEA or Switzerland and who are not permanent residences of Malta, who are seeking to make Malta their main place of residence and benefit from the tax status in Malta.
To qualify, an applicant must hold a qualifying property in Malta, pass a ‘due diligence’ test and have health insurance. A minimum tax of €15,000 per annum is payable and applicants are not permitted to reside in any other jurisdiction for more than 183 days per year.
Residency in Malta and its tax benefit may also be extended to an applicant’s dependents.
For more information click here.
Re-domiciling a Company to Malta
The process of re-domiciliation is whereby a company registered in one jurisdiction, continues in another.
In 2002, Malta released legislation in respect of the relocation of foreign companies in to Malta. In order to redomicile a company to Malta, the legislation of the country in which the foreign company is registered must permit company relocation, as must the company’s articles of association.
For foreign public companies or those requiring special business licenses, there are different provisions for their relocation under Maltese laws. Foreign companies undertaking licensable activities must obtain the approval of the relevant authorities in the foreign country and then apply for the specific license with the Maltese authorities.
Redomiciliation is an alternative solution to establishing a brand new company, subsequently affording a company the ability to continue operating with the same brand and reputation it has built in its country of origin, under the same contractual ties and agreements, without losing its financial history.
For more information or assistance with redomiciling your company to Malta, email us on info@sentientinternational.com or telephone +356 2099 1531 to discuss your requirements in more detail.
Choosing the Right Business Address
When choosing your place of business, getting the right premises in the right area is key. Here are a few of the most popular business districts in Malta:
Gzira
Gzira is a small yet bustling town bordered by Sliema, Msida and Ta’Xbiex. The town is close to the University of Malta, benefits from a large amount of footfall and boasts a vibrant atmosphere.
Commercial property in this area is in high demand due to its accessibility being centrally located. Gzira is considered the perfect location for businesses who are in their growth and development stage and looking to make their mark.
Sliema
Located in the North of Malta, although once a sleepy fishing village, Sliema is now a bustling town that offers spectacular views over the marina to Valletta.
The town boasts a number of residential and commercial properties along the seafront and has become a prime location and hub for international business.
Valletta
The cosmopolitan capital city of Valletta oozes culture and offers some beautiful offices and commercial spaces for bars and restaurants. It is a popular location amongst aspiring entrepreneurs as well as investors with existing and/or start-up businesses. It is also favoured amongst the maritime, financial and hospitality sectors.
St Julian’s Bay
St Julian’s Bay is one of Malta’s busiest hotspots and is a key location for steady, sustainable business. It is extremely popular among the tourism and leisure industry as it is busy during the day and the night.
It is also home to a number of high-end premises finished to a high standard but may come at a higher cost. St Julian’s Bay offers the best of both worlds with a good mixture of business and leisure.
For more information or assistance in relocating your business to Malta, email info@sentientinternational.com or telephone +356 2099 1531 to discuss your requirements further.
